Saturday, 7 January 2017

PM SIR -------- NITI (Policy) WAS GOOD BUT RAN NITI (Strategy) ????

Niti
or Ran-Niti, policy and strategy ~ these words were used by our Prime Minister
Shree Narendra Modi recently in an interview with a prominent media group. He
said it was our policy or Niti to curb black money. It has been there without
change and strategy or ran Niti was being changed as per the situation. He tried
to justify the government’s approach after announcement of demonetization on 8th
November. Everyone knows that demonetization decision was not only taken in
haste but was also implemented in an unplanned manner.

Almost
every day government issued new directions and notifications. It was being done
to show that government is working proactively to curb black money.

In
the start both prime minister and finance minister said that anyone having old
currency notes of Rs 500 and 1000 notes in their bank accounts. Later, it was
said that person depositing old currency notes into banks will have to satisfy
bank officers by filling a simple form with some questions. This form was
introduced when more than 70% of (nearly) Rs. 15 trillion of old currency notes
was already deposited. Then very next day of this announcement the condition of
satisfying the bank officers and this form was again discontinued.

Both
prime minister and finance minister in election rallies, media briefings and
their big size hoardings said that no interrogation would be done from the
people depositing up to 2lakh 50 thousands in their account. But later, it was
said that those depositing Rs. 2.5 lakhs also may be interrogated to the prove
source and income and cash holding.

New
currency of Rs. 2000 and 500 were not printed and distributed in banks with
proper planning. This created long queues in the banks. India being a Cash
economy, Business activities witnessed steep downfall. From luxurious items and big brands to small
vendors, hotels, restaurants and small chai valas, daily bread earners like
rickshawalas and rahdiwalas all were affected.

Government
imposed cash withdrawal limits from banks and even that much cash 24000 per
week from saving accounts and 50000 per week from current account was not
available in one go. So everyone has to visit banks and stand in queue everyday
if he wanted to withdraw 24000 or 50000 per week.

Printing
of new notes was not planned and cash was not distributed at district level
currency chests all over the country. ATMs
were not calibrated for issuing new size Rs. 500 notes and it took more than 20
days before ATMs started issuing Rs. 500 new notes. It seemed that whole
government machinery was working in a immature way. NITI or RAN Niti was good
but the implementation was equally bad.